The largest cryptocurrency in the world Bitcoin (BTC) continues to show strength and has broken through the $ 22,200 level by gaining 3% in the past 24 hours. According to the technical charts, BTC is trading at a pivotal point in its 200-day moving average (MA).
Last time, BTC faced strong rejection at these levels followed by a major correction. As famous cryptocurrency analyst Ali Martinez explains:
The last time #Bitcoin reached 200MA on the 12-hour chart, caused a strong correction. The TD Sequential is now presenting a sell signal at the same level, anticipating a retracement. $ BTC it must print a 12-hour candle closing above $ 22,950 to invalidate the bearish outlook.
Furthermore, the on-chain data for the profit / loss made by Bitcoin shows that there is a profit taking with every increase in the price of Bitcoin. The realized profit / loss ratio for Bitcoin is currently below 1.0, which highlights a strong bearish cycle. Like Glassnode explains:
An interesting observation is the upward trend that began in early June and peaked in mid-August after falling to 0.58. This pattern reconfirms that during that relief rally there was an increase in profit taking by investors.
Some positive developments for Bitcoin
After attempting to break below $ 20,000 last week, BTC’s price was quick enough to recover and holds $ 20,000 as a strong support level. Quoting the number of active addresses. Analyst Ali Martinez also believes that Bitcoin’s low could be. In one of his recent tweets, the cryptocurrency analyst wrote:
The number of new newspapers $ BTC addresses on the network appear to be increasing rapidly, with a weekly average of around 410,000 addresses. A sustained move above 415,000 #BTC addresses could confirm the optimistic outlook.
Furthermore, the total number of BTC addresses with at least one or more Bitcoins has approached 100,000. This shows that retail players continue to accumulate.
The content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.